Financial Services Commission Virtual Asset Business with cryptocurrency prices Facts Investigation. Half of ‘exclusively listed coins’ are MDD 70%↑
Most users are ‘males in their 30s’… Coin Market KRW 3.3 billion
The volatility of the cryptocurrency
The volatility of the crypto currency (virtual asset) price traded in the domestic market in the second half of last year was found to be 4.4 times that of the securities (KOSPI) market.
In particular,
one out of two ‘independently listed coins crypto currency prices (independently listed virtual assets)’, which have a high proportion in the domestic market, had a maximum drop of more than 70% from the peak.
According to the ‘
Results of the Survey on Virtual Asset Businesses in the Second Half of 2021’ announced by the Financial Services Commission on the 1st,
the average
MDD (maximum loss from peak) of virtual assets circulating in Korea in the second half of last year was about 65%. This is 4.4 times the KOSPI MDD of 14.8% during the same period. The average MDD of the KRW market was 59% and the coin market was higher at 71%.
According to the survey,
According to the survey, as of the end of last year, there were a total of 623 virtual assets trade in Korea, of which 403 were individually liste,
accounting for
65%. Separately listed virtual assets are listed on only one exchange, making it difficult to compare prices and wide range of price fluctuations. In particular, if an exchange goes out of business, it may lead to delisting.
In the domestic market
the proportion of major virtual assets was low compared to the global market, and investment in non-mainstream and independently listed virtual assets was high. The global market accounted for 59% of the market capitalization of Bitcoin and Ethereum, which rank first and second by market capitalization, but only 27% in the KRW market and 9% in the coin market.
An official from the Financial Services Commission said, “Half (219 types) of individually listed virtual assets have MDD of over 70%,” and “a careful approach from users is necessary.”
The total number of domestic
The total number of domestic users using virtual asset providers was 15.25 million.
As of the end of last year,
the number is the sum of the number of registere users with accounts registere at 24 operators, and the number of duplicate subscriptions is include. Among them, the number of transactionable users who fulfilled the duty of customer verification (KYC) was 5.58 million, which was 36.6% of the number of registered users.
By age,
By age, those in their 30s accounted for the most at 31%. It was follow by △40s (27%) △20s (23%) △50s (14%) △60s (4%). In terms of gender, there were 3.74 million males and 1.84 million females, doubling the number of males.
It was also found that most of the users had virtual assets worth less than 1 million won. According to the survey, the ratio of virtual assets and deposits in KRW 1 million or less was 56% of the total. The number of users with virtual assets of 10 million won or more was 820,000, or about 15% of the total users.
Transaction participants
Transaction participants participated in an average of 4 transactions per day,
and the amount of each transaction was about 750,000 won.
trillion won, with an average daily transaction volume of 11.3 trillion won.
It is analyze that the market has been reorganize centere on the KRW market, with the share of business operators trading in the KRW market reaching 96%.
The average commission
The commission rate for buying and selling crypto currency prices virtual assets was 0.17%, which was higher than the stock trading commission rate (0.0027%). The commission rate in the KRW market was 0.16%, and the average commission rate in the coin market was 0.17%.
As of the end of last year,
As of the end of last year, customer deposits in crypto currency prices won, which are standby transaction funds, were counte at 7.64 trillion won. Coin market operators that do not support KRW market transactions have KRW 4.990 billion in deposits. As of the 20th of last month, the deposit in KRW of the coin market decreased to 3.3 billion won, and all of them are subject to customer return.
the number of domestic
the number of domestic virtual asset traders was 1,717, with an average of 239 in the KRW market and 38 in the coin market. Among them, there were a total of 200 people related to anti-money laundering (AML) tasks,
with an average
of 18 in the KRW market and 6 in the coin market. An official from the FSC pointed out, “Virtual assets are a field with a very high risk of money laundering,
but considering the AML input ratio and dedicated ratio, it is necessary to secure additional dedicated personnel as the proportion of AML personnel is low.”
This virtual asset business
This virtual asset business fact finding survey was conducte target 29 business operators (24 traders, 5 other businesses) registere with the Financial Intelligence Unit (FIU).
However
the five other companies were exclude from the results of this fact-finding survey because it was difficult to collect meaningful statistics because they were in the early stages of business.
An official
from the Financial Services Commission said, “We will continue to accumulate data on the domestic virtual asset market by regularly conducting semiannual surveys in the future.”
